more profits more headaches or less profits less headaches?

[Adam Gott]

I am looking at two options (for a first time rental investment):

1.  4 plex for $200,000 - needs a little work but in pretty good shape for my area.  Lower rent tenants but not the bottom of the barrel.  ROI 11.14%.  For this I gave a huge allowance for vacancy - 16% - until I see some actual historical numbers.  And I used ~16% for maintenace/capital expenditures.  This one was built in 1960 and is in a somewhat 'lesser' part of town.

2.  Two duplexes used as college student rentals for ~$360,000.  Built in 2002 and in great shape, a couple of blocks away from the college but they are both furnished.  Property manager in place and will continue for 8%.  ROI for these is closer to 7% but that is highly dependent on vacancy rate (in the summer it is 66%, which I have figured in to my ROI).

Which would you choose? I will use a PM for either and figured 10% for the first option. I guess the choice comes down to older unit with more headaches or newer units with less problems but less profit? From reading the forums it seems that there are people in both camps! I know that the ROI isn't great for option 2 but it's good for my area and if i add in tax benefits to myself they both nearly double.